The management of Hoyt Corp. is considering the effects of various inventory-costing methods on its financial statements and its income tax expense. Assuming that the price the company pays for inventory is increasing, which method will(a)Provide the highest net income(b) Provide the highest ending inventory(c) Result in the lowest income tax expense(d) Result in the most stable earnings over a number of years

a) FIFO  will Provide the highest net income

b) FIFO  will Provide the highest ending inventory

c)LIFO  will Result in the lowest income tax expense

d) Average Cost  will Result in the most stable earnings over a number of years

A company cannot manipulate income by choosing which unit to ship because the cost of a unit sold is not determined by a serial number. Instead, the cost attached to the unit sold is always the oldest cost. Under FIFO, purchases at the end of the period have no effect on cost of goods sold or net income. Thus, FIFO method will the highest net income and  the highest ending inventory.

When considering the LIFO method the result will be the lowest taxable income when there is a rise in the price. When an organization uses  LIFO, the allows it to use LIFO only for tax purposes. The most stable eraning over the given number of years can be resulted by the average cost.

years agooo ahaha. but honestly they need to update ! : )

there's 11 people for the 1st position. then, no matter who gets it, there's only 10 left for the second, and then 9 left for the third. 11 x 10 x 9 = 990.   the answer is there are 990 different ways the positions can be filled by these applicants